Interim Results

CWC confirms FY outlook after strong first half

Cable & Wireless Communications has confirmed that its full year outlook is in line with guidance after a strong first half and that its three-year plan is on track.

Highlights for the six months to the end of September include:

- Group revenue of US$1.2 billion up 4%; 5% higher at constant currency against the prior year - Group EBITDA of US$427 million up 4%; proportionate EBITDA increased by 5% against the prior year with an excellent performance in the Caribbean, its largest region, with EBITDA up 22%; cost restructuring launched in Panama and the Bahamas

- Momentum building with second quarter EBITDA 11% higher than prior year; up 13% on proportionate basis

Chief executive Phil Bentley said: "Our Company has significant growth and synergy potential. Whilst we are in the first phase of our 3 year plan, we are pleased with initial progress and expect to deliver a strong second half and full year performance in line with outlook. We are also pleased to have identified additional synergies, lifting our previous US$85 million expectation to US$125 million whilst maintaining the same anticipated costs to achieve those savings. We remain on track with our 3 year plan and are confident our business model will deliver significant long-term shareholder value creation.

"Project Marlin is now in its second year and, having established HSPA+ as the minimum network standard across CWC's mobile footprint, our focus is now on LTE upgrades in select markets. We are also rolling out high-speed data networks in our markets and passed an additional 33,400 homes with 832 kilometres of fibre during the half whilst upgrading 53,000 customers in Barbados from legacy networks. We are also excited to have secured exclusive Premier League football rights from 2016/17 to 2018/19, which we will carry on our new channel, FLOW Sports Network, set to launch in the third quarter.

"The team has been doing an excellent job focussing on integration activities, combining our fixed networks, launching our new "FLOW" quad-play brand, and introducing a more efficient organisational model to drive synergies and accountabilities. Momentum generated from our investments, and synergies from the integration, led to 11% growth in EBITDA in the second quarter versus last year, further underpinning confidence in our 3 year plan. We expect this momentum to continue in the second half."